Atom Bank has reduced rates across its prime residential mortgage range.
Rates are being cut by 0.1% across its entire prime range.
As a result, 95% loan-to-value (LTV) rates stand at 5.59% on a two-year fix, 5.44% on a three-year fix, and 5.24% on a five-year fix.
Rates are also being reduced for borrowers looking to raise additional sums with Atom Bank, with a drop of 0.1% on further advance and retention products.
The rate reductions apply with immediate effect.
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Adapting criteria
Atom Bank has adapted its criteria in a range of ways to ensure the bank can support more borrowers.
These include increasing the maximum loan-to-income (LTI) limit to six times income for those earning more than £75,000, and raising the maximum LTV available on flats, new-build flats and new-build houses in London and the South East.
In addition, Atom Bank has broadened its near prime criteria to help more borrowers by more than doubling the level of acceptable unsatisfied register defaults to £2,500 and cutting the ‘look back’ period for defaults from three years to two.
Richard Harrison, head of mortgages at Atom Bank, said: “I have no doubt that this rate reduction will be warmly welcomed by brokers and borrowers alike.
“These cuts mean that Atom Bank continues to offer incredible value to prime borrowers, particularly those with only a modest deposit who are looking to raise the funds for a purchase, to remortgage, or simply to obtain a further advance.
“These rate cuts go hand in hand with our recent criteria improvements, increasing income multiples to six times income for those earning above £75,000 and maximum LTVs to 95% on new-build houses in London and the South East, and are driven by our desire to deliver for a greater number of borrowers who may have been under-served elsewhere.
“The combination of keen pricing, cutting edge technology and a laser-like focus on working faster and more efficiently is helping Atom Bank build a strong reputation with brokers.”
Towards the end of last month, the bank experienced a record rise in Q3 commercial applications.
